Fintech startup CompareAsia Group secures US$40mil Series A funding
By Digital News Asia April 22, 2015
- Investment led by Goldman Sachs, Nova Founders Capital and others
- Financial comparisons startup says it’s targeting estimated US$52bil market
THE financial comparisons portal wars heated up with CompareAsia Group, the Hong Kong-headquartered holding company behind Malaysia’s CompareHero.my, announcing it has raised an additional US$40 million in funding.
This latest round was led by the Goldman Sachs Investment Partners team and other institutions such as Jardine Pacific, Nova Founders Capital, ACE & Company, and Route 66 Ventures.
As part of the funding round, Goldman Sachs Investment Partners will join the board of directors of CompareAsia Group.
Other investors in this round include angel investors Mark Pincus, the founder of Zynga; and Owen Van Natta the former chief operating officer of Facebook and former chief executive officer of MySpace.
CompareAsia Group was founded by Kuala Lumpur-based tech incubator Nova Founders. It received an undisclosed amount of seed funding in July 2013, and in February 2014, secured over US$3 million in funding from Stem Capital Partners and “other International investors.”
The free-to-use CompareHero.my site gives consumers visibility into the services that best match their price and needs, while also giving banks and insurers a new channel to reach customers, which fundamentally cuts down their marketing and distribution costs, CompareAsia Group said in a statement.
Other Malaysian startups in a similar space include iMoney, which has raised about US$6.5 million since its inception; Loanstreet, a recipient of the Star Accelerator Fund; and RinggitPlus.com, which last year merged with personal finance education website SaveMoney.my.
CompareAsia Group claims to be the largest financial comparison platform in Asia, with operations in eight markets covering over half a billion people.
“This tremendous support and signal of confidence reinforces the belief in our mission to deliver transparency and choice to consumers while also giving partners an innovative new channel to reach the consumer,” said cofounder and managing director Gerald Eder (pic).
“We give the power back to consumers by increasing financial education, market transparency and country-wide access to financial products,” he said in the statement issued by his company.
CompareAsia Group said it is targeting an estimated US$52-billion market, which is the current marketing and customer acquisition spend of financial products providers across its target markets in Asia.
It said it already works with over 60 market-leading brands like American Express, HSBC, Citibank, Standard Chartered, and MSIG.
CompareAsiaGroup sites are currently operating in Hong Kong, Indonesia, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam.
“Asia presents a unique opportunity for the company – the financial industry is growing rapidly but has remained relatively untouched by technology,” said Kenneth Eberts, co-head of Goldman Sachs Investment Partners.
“We hope to assist the company in achieving its ambitions and create value for its customers and shareholders,” he added.
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